Any interest on tax refunds is taxable
There is no requirement for your minor daughter to acquire PAN and file returns. Such income can be clubbed with the income of either the parents (when the marriage of the parents subsists) whose income before such clubbing is higher. If the marriage of the parents does not subsist, such income is clubbed in the hands of the parent maintaining the child. Also, the parent with whom the minorís income is clubbed can avail an exemption under Section 10 (32) for an amount of R1,500.
I filled my returns for AY10, claiming a refund of R10,055. I received a refund order for a higher amount. The letter from the IT department bifurcated the balance as interest. Is the interest taxable?
The amount in excess of the refund claimed is interest under Section 244A paid to you by the I-T department. Such interest is payable where any refund arises due to any excess payment of tax and is payable at 0.5% per month, or part of a month from the first day of the assessment year to the date of grant of refund.
The interest is taxable in the year of receipt under the head, Ďincome from other sourcesí.
Is there a need to disclose agricultural income
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